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HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING - ETF ...
HUMAN RESOURCE
DEVELOPMENT
TARGETS AND
MONITORING
HUMAN RESOURCE DEVELOPMENT TARGETS AND
MONITORING

A background note for the Policy Leaders’ Forum, 10-11 October 2013
The FRAME initiative is built around four components: 1) foresight; 2) reviewing institutional
arrangements; 3) monitoring; and 4) regional cooperation. The components are treated as unique
interventions which constitute the building blocks of the sector approach to human resource
development (HRD). The third component – monitoring – will lead to the development of an indicators-
based tool to monitor progress towards achieving the skills 2020 vision developed during the foresight
component. It will also strengthen accountability in implementing the sector-wide approach in HRD in
line with the national, regional and European strategic objectives.

Ambitious European and regional targets
The critical role of education and skills are at the heart of the Europe 2020, Education and Training
2020 (ET 2020) and South East Europe Strategy 2020 (SEE 2020) strategies, not only as drivers for
growth, employment and competitiveness but also to help individuals adapt to constantly changing
demands on the labour market and to improve social cohesion. Specific headline targets have been
committed at the EU level, supported by corresponding national targets which are highly relevant for
Human Resources Development (HRD).

The countries of South East Europe and Turkey (SEET) share common aspirations for EU
membership and are in various stages in the process of accession to the European Union. Throughout
the accession process, the countries promote networking, mutual learning among and between SEET
stakeholders, the European Commission, EU Member States and other international organisations,
regarding education, employment and social cohesion.

A regional strategy for cooperation towards smart, sustainable and inclusive growth, SEE 2020, will be
adopted soon. SEE 2020 brings the regional challenges and priorities by focusing on major economic
opportunities and cooperation enhancement as a backbone for regional development. Education and
employment are well positioned with three headline targets aimed at increased GDP per person
employed, number of highly qualified and overall employment rate.

Both the EU and SEE 2020 strategies rely on a strong inter-linkage between priorities and targets, and
acknowledge that real and long term progress depends on an integrated reform package covering
different areas: economic development, education and training, labour market and social aspects.
Relevant examples at the EU level are the National Reform Programmes drafted by the Member
States, using an integrated approach to set priorities, targets and actions, complemented by a
consistent cross-country monitoring, progress assessment and peer review processes.

Diversity of national targets – striving for convergence towards regional
and European targets
On education, employment and social inclusion, the SEET countries have a wide diversity of priorities
and targets set at the national level, and with different time horizons. The diversity of national targets
mirrors the countries’ different contexts, development and challenges. The annexed tables on
education, employment and social inclusion illustrate this wide range of indicators. This reinforces the
argument for enhancing the link between the national, regional and European follow-up and progress
monitoring mechanisms in the field of education, employment and social inclusion at country and
regional level.

                    HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 02
There is a golden opportunity for mutual exchange, at both the regional and EU levels, on how to
monitor progress based on an integrated approach of priorities, targets and indicators. The main
challenges are:

■    The availability at national level and comparability of data at the regional and European levels
     (e.g. human and financial resource constrains, time lag in data collection, inconsistencies of
     methodologies over time, etc.);

■    Inconsistent use of available data for policy making due to incomplete data processing and/or low
     relevance of information gathered;

■    Incomplete mechanisms to monitor the progress; and

■    Insufficient robustness of the mutual learning processes.

Skills for innovation
The EU has made decisive steps to improve its capacity to measure performance in innovation output
by developing a composite indicator to complement the EU 2020 headline target on raising investment
in Research & Development to 3% of GDP.

The new indicator on innovation output focuses on four components relevant for measuring the extent
to which innovative sectors contribute to jobs expansion and competitiveness:

1.    Technological innovation measured by the number of patent applications per billion Euros of
      GDP;

2.    Employment in knowledge-intensive activities as percentage of total employment;

3.    Competitiveness of knowledge-intensive goods and services to reflect each country capacity to
      reach global markets with innovative products and services; and

4.    Employment in fast-growing firms in innovative sectors.

The new composite indicator is highly sensitive to the skills dimension as all components are closely
linked to the capacity of the HRD sector to generate skills to support innovation (in particular the
second component which indicates how the supply of skills feeds into the economic structure).

Innovation is high on the SEET policy agenda at the country and regional levels (e.g. SEE 2020
Strategy) but a challenge remains: the availability and robustness of relevant indicators to reflect
technological advancement and innovation as main contributors to increased competitiveness.

Opportunities for streamlining and optimising synergies related to HRD
The FRAME Initiative role
The monitoring of the ET 2020 and SEE 2020 Strategies creates demand for streamlined key
indicators relevant for evidencing progress. This encourages the countries to engage in working jointly
on consolidated indicators that realistically reflect national and regional priorities and targets. In pursuit
of these priorities and targets, HRD related policies and institutional framework must address the issue
of skills for future, including the increased potential for innovation.

The overall objective of the FRAME Initiative is to support countries to develop integrated medium to
long-term policies for skills generation. FRAME serves as a catalyst to define “Skills for Future” visions
and roadmaps for the adaptation of education and training and labour market systems to push forward
the vision. It is part of the foresight as change management tool to monitor closely achievements

                    HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 03
towards the vision for skills. Accordingly the results of the foresight exercise are coupled with follow-up
mechanisms at the national level based on a sound monitoring tool.

Relying on a participatory approach the project aims at ensuring commitment and agreement of
national stakeholders for a monitoring tool to measure progress in policies on skills generation and in
implementing the related road map.

The objective of the FRAME Monitoring component is to select a set of qualitative and quantitative
indicators that can monitor: (i) the achievements in outcomes related to skills generation; and (ii) the
evolution in the implementation of national policies towards the vision for skills.

The process of indicator selection will take into consideration the national, regional and European
strategic objectives and targets in order to ensure relevance at national level, provide consistency
across countries and enhance the mutual learning processes. To this end, the monitoring tool is
intended to support policymakers in assessing the progress towards the skills vision for 2020, based
on three core elements:

■   Agreement on a common methodology, set up at the regional level but adapted to national
    needs;

■   Agreement on the indicators which are at the basis of the monitoring tool; and

■   Definition of national targets.

ETF work in the region is intended to benefit from the National Technical Teams’ input and it
comprises the following key elements:

■   Indicators (relevant for the country’s vision for skills);

■   Baseline data (describing the current situation);

■   National Targets (defined by government representatives); and

■   Shared Methods (for data collection and data processing).

Points for discussion:

■   The role of monitoring in achieving the national skills vision and convergence towards regional and
    European targets

■   Monitoring as a tool to encourage and facilitate effective policy making

■   The links between country monitoring mechanisms and agreed European and regional targets
    relevant for skills generation

                    HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 04
FACTSHEET – EDUCATION AND TRAINING

Europe 2020 Strategy
Target - Share of early school leavers: below 10%
Early leavers from education and training in 2012 (%, age group 18-24)1
    50

    40

    30

    20

    10

     0

Source: Eurostat and National Statistical Offices (Enlargement Countries), 2013.

Notes:        * 2010 data; ** 2011 data. Montenegro: 15.5% (females), 9.2% (males), 2011.

Target - At least 40% of 30-34 year-olds completing third level education
Tertiary educational attainment in 2012 (%, age group 30-34)2
    60

    50

    40

    30

    20

    10

     0

Source: Eurostat and National Statistical Offices (Enlargement Countries), 2013.

Notes:        * 2010 data; ** 2011 data.

1
 Bosnia and Herzegovina, Montenegro and Kosovo (This designation is without prejudice to positions on status, and is in line
with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence) not available.
2
    Ibid 1.

                           HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 05
Draft SEE 2020 Strategy3
Targets (Smart Growth pillar)
■ Increase GDP per person employed from EUR 27,485 at PPS to EUR 36,300 at PPS

■ Add 300,000 highly qualified persons to the workforce

                                            Regional
                                                                                       4
                                            average/       ALB        BiH      CRO          KOS        MKD     MNE        SER
                                              total
Growth of GDP per person employed by 33%

Baseline – 2010 (EUR at PPS)                  27,485      17,839    29,183    40,990       14,966   28,029   30,321      25,864

Target – 2020 (EUR at PPS)                    36,300      24,000    40,200    52,000       20,200   35,000   37,000      34,000

                               Growth of highly qualified persons in the workforce (300,000 people)

Baseline – 2010 (million people)                1.7         0.21     0.21       0.5         n/a       0.17     0.05       0.54

Target – 2020 (million people)                  2.0         0.26     0.25       0.6         n/a       0.2      0.06       0.65

National targets
ALBANIA                  National Strategy for Vocational Education and Training 2013-2020 (draft). Targets for 2020
                         increase enrolment rate in upper secondary education: 97%
                         increase enrolment rates in tertiary education: 70%
                         achieve a 30% share of students attending secondary vocational education
BOSNIA AND               Strategic Directions for Development of Education in Bosnia and Herzegovina 2008 – 2015. Targets for 2015
HERZEGOVINA              Enrolled and completion rates in compulsory education increased to 100%
                         Enrolment rate in secondary education increased to 90%
                         Enrolment share in gymnasia and four-year vocational schools increased to 80%
                         Enrolment rate in higher education increased to 32%. Illiteracy rate reduced to 2%
KOSOVO*                  Kosovo Education Action Plan (KESP) 2011-2016. Targets for 2015 and 2016
                         all children aged 5-6 be included in pre-primary education by 2016 and that 35 per cent of children aged 0-5
                         be included in various forms of pre-school education;
                         by 2016 over 95% of Kosovo children attend compulsory education;
                         at least 35 per cent of the population aged 18-24 have access to higher education by 2015
FORMER                   Draft Strategy for Vocational Education and Training in a Lifelong Learning Context – Better Skills for a
YUGOSLAV                 Better Tomorrow of FYR Macedonia. Target for 2020
REPUBLIC OF              Train youth and adults without qualifications at ISCED 3 level and higher
MACEDONIA
MONTENEGRO               National Strategy for Employment and Human Resource Development 2012-2015
                         Targets for 2015
                         Share of university graduates in the age group 25-34: 35%
                         Share of children enrolled in preschool in total no. of children up to 6 years of age: 30%
SERBIA                   National Education Strategy. Targets for 2020
                         Drop out: In primary schools less that 5%, In secondary schools less than 5%
                         Enrolment: 40% of VET students enrol in higher education, 95% of students in general secondary education
                         enrol in higher education
                         Adult education enrolment: 7% enrolled in adult education programmes
TURKEY                   Turkey – Vision 2023. Targets for 2023
                         100% literacy rate for people under 50
                         To have more than 200 universities
                         Lifelong learning participation: 8%. Annual training of 400.000 unemployed to attain skills

3
  The sections on SEE 2020 Strategy are based on the first draft of the Strategy “South East Europe 2020: Jobs and
Prosperity in a European Perspective” (RCC, August 2013).
4
    Although a recent EU Member State, Croatia participates in the SEE 2020 Strategy process.

                         HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 06
FACTSHEET – EMPLOYMENT

Europe 2020 Strategy
Target - 75% of the 20-64 year-olds to be employed
Employment rate in 2012 (%, age group 20-64)5
    90

    75

    60

    45

    30

    15

     0
                                                                                 Estonia
         EU28

                                                                                                                                                                                                                                      Poland

                                                                                                                                                                                                                                                                                          Finland

                                                                                                                                                                                                                                                                                                             United Kingdom

                                                                                                                                                                                                                                                                                                                                                           Serbia**
                                 Bulgaria
                                            Czech Republic

                                                                                                     Greece

                                                                                                                                                                                                                                               Portugal

                                                                                                                                                                                                                                                                    Slovenia
                                                                                           Ireland

                                                                                                                                                 Cyprus

                                                                                                                                                                   Lithuania
                                                                                                                                                                               Luxembourg

                                                                                                                                                                                                                                                                               Slovakia

                                                                                                                                                                                                                                                                                                    Sweden
                                                                       Germany

                                                                                                                               Croatia

                                                                                                                                                          Latvia

                                                                                                                                                                                            Hungary
                                                                                                                                                                                                      Malta

                                                                                                                                                                                                                                                          Romania

                                                                                                                                                                                                                                                                                                                                         FYRM
                       Belgium

                                                                                                                                         Italy
                                                             Denmark

                                                                                                                                                                                                              Netherlands

                                                                                                                                                                                                                                                                                                                                                                      Turkey
                                                                                                              Spain
                                                                                                                      France

                                                                                                                                                                                                                            Austria

                                                                                                                                                                                                                                                                                                                              Albania*
                EU27

                                                                                                                                                                                                                                                                                                                                                Kosovo**
Source: Eurostat and National Statistical Offices (Enlargement Countries), 2013.

Notes:          * 2010; 2012, age group 15-64: 56.4%; ** 2011.

                Bosnia and Herzegovina: 38.5%, age group 15-64, 2012; Montenegro: 47.4%, age group 15-64, 2012.

SEE 2020 Strategy
Target (Inclusive Growth pillar) - Increase the overall employment rate from 39.5% to
44.4% (% of population 15+)
                                                                                                                               Regional
                                                                                                                               average/                                ALB                            BiH                      CRO                         KOS                            MKD                                 MNE                          SER
                                                                                                                                 total
                                                                                                                               Increase in overall employment

Baseline – 2010 (%, population 15+)                                                                                                      39.5                            47.1                         32.5                        41.1                        41.7                          38.7                               40.1                        37.9

Target – 2020 (%, population 15+)                                                                                                        44.4                            54.3                         33.9                        47.5                        45.8                          43.6                               49.6                        43.8

5
    Bosnia and Herzegovina and Montenegro not available.

                                                             HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 07
National Targets
ALBANIA                   Sectoral Strategy on Employment and Vocational Training 2007-2013, part of the National Strategy for
                          Development and Integration 2007-2013 (NSDI).
                          Targets for 2013
                          Unemployment level: 11.5%
                          Employment rate: 56%
                          Number of PES matching/intermediations: 13.000
                          Number of unemployed participating in in training: 7,500
                          At least 20% of the registered unemployed people participate in a training or employment measure
                          Main priorities for 2020:
                          Enhancing the number of people participating in adult training
                          Reducing the share of long-term unemployment
                          Reducing the youth unemployment rate
                          Reducing gender gaps in labour force participation and in employment
BOSNIA AND                Strategy for Employment
HERZEGOVINA               Targets for 2014:
                          2% annual increase in overall employment rates
                          2.5% per year increase in female employment
                          Youth unemployment decreased to 30% by 2014
KOSOVO*                   Ministry of Labour and Social Welfare Strategic Action Plan 2011-20136
                          Target for 2013
                          Increase of vocational training capacities for jobseekers (unemployed) by 35% by 2013
FORMER YUGOSLAV           National Employment Strategy 2011-2015 and the Action Plan on Youth Employment 2015
REPUBLIC OF               Targets for 2015
MACEDONIA                 Increase in the number of secondary education leavers (age group 15-29) who are employed by: 14%
                          Decrease in the number of youth (age group 15-24) who leave the secondary education system without
                          qualifications: 1.5 percentage points
                          Increase the employment rate of youth (age group 15-29) to: 29%
MONTENEGRO                National Strategy for Employment and Human Resource Development 2012-2015
                          Targets for 2015
                          Employment rate (15-65): 60%
                          Female employment rate (15-65): 50%
                          Unemployment rate (15-65): 15%
                          Registered unemployment rate: 8%
                          Youth unemployment rate (15-24): 28%
                          Share of LTU in total unemployed: 55%
                          Share of self-employed in total employed: 20%
SERBIA                    National Employment Strategy for the period 2011 - 2020
                          Projections 2020
                          Activity rate (15-64): 68.8%
                          Employment to population ratio (15-64): 61.4%
                          Employment to population ratio (20-64): 66.3%
                          Unemployment rate (15-64): 10.8%
                          Unemployment rate (20-64): 8.7%
                          Youth unemployment rate (15-24): 24%
                          Share of LTU (15-64): less than 50%
                          Share of ALMP funds allocated as percentage of GDP: 0.5%
TURKEY                    Turkey – Vision 2023
                          Targets set for 2023
                          Unemployment rate: 5%
                          Employment rate: 50%
                          Unregistered employment in the non-agricultural sector: 15%
                          Labour force participation rate of women: 35%

6
 A new Sectoral Strategy of the Ministry of Labour and Social Welfare of Kosovo is under development with 2020 targets in
employment and social welfare.

                      HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 08
FACTSHEET – SOCIAL INCLUSION

EU 2020 Strategy
Target - At least 20 million fewer people in or at risk of poverty and social exclusion
People at risk of poverty or social exclusion in 2011 (%)
     50

     40

     30

     20

     10

      0

Source: Eurostat, 2013.

Note: As data for the indicator – “People at risk of poverty or social exclusion” (sub-indicators: persons at risk of poverty,
severely materially deprived, living in households with very low work intensity) are not available for the Enlargement countries,
the following table provides data on the percentage of the population living below the national poverty line.

Poverty headcount ratio at national poverty line (% of population)

                                                       Poverty headcount ratio                      Last available year

Albania                                                             12.4                                      2008
Bosnia and Herzegovina                                              14.0                                      2007
Former Yugoslav Republic of Macedonia                               19.0                                      2006
Kosovo                                                              29.7                                      2011
Montenegro                                                           9.3                                      2011
Serbia                                                               9.2                                      2010
Turkey                                                              18.1                                      2009
Source: The World Bank, 2013

Notes: National poverty rate is the percentage of the population living below the national poverty line. National estimates are
based on population-weighted subgroup estimates from household surveys.

SEE 2020 Strategy
No specific target is set for poverty combating, although some measures of education and labour
market inclusiveness are inserted in the Inclusive growth pillar (Employment dimension) and Smart
growth (Human Capital Development Dimension).

National Targets
ALBANIA                       Strategy for Social Inclusion 2007-2013 (crosscutting strategy, part of NSDI)
                              Targets for 2015
                              Absolute poverty: 12.2 %

                          HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 09
No households living in extreme poverty

BOSNIA AND              -
HERZEGOVINA
KOSOVO*                 Ministry of Labour and Social Welfare Strategic Action Plan 2011-2013
                        Target for 2013
                        Annual increase of provision of social and family services’ level by 20% -local and central levels
Former Yugoslav         -
Republic of MACEDONIA   No quantitative targets set in the National Strategy on Alleviation of Poverty and Social Exclusion
                        2010 – 2020
MONTENEGRO              National Strategy for Employment and Human Resource Development 2012-2015
                        Targets for 2015
                        Poverty rate: 5%
                        Share of socially vulnerable groups in total unemployment: 8%
SERBIA                  -

TURKEY                  According to the 10th National Development Plan for 2014 – 2018
                        Targets for 2018
                        Gini coefficient: 0.36
                        Population below $ 4.30 per person per day rate: less than 1%;
                        Relative poverty: 9%

                   HUMAN RESOURCE DEVELOPMENT TARGETS AND MONITORING | 10
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